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CFA Level 1
Equity Investments

Intrinsic Value Calculation Using Gordon Growth Model

Easy Equity Valuation Techniques Dividend Discount Models

Sarah is evaluating a company that pays dividends annually. She expects the company to increase its dividend by 5% each year. If the expected dividend next year is $3 and her required rate of return is 10%, what is the intrinsic value of the stock based on the Gordon Growth Model?

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